Global trade to hit record $33 trillion in 2024

Global trade is expected to hit a record $33 trillion in 2024, according to the latest report from the United Nations Conference on Trade and Development (UNCTAD).

This represents a $1 trillion increase compared to the previous year, reflecting a 3.3 per cent growth in global trade despite a challenging economic environment.

The strong performance of trade services has been a key driver of this growth, with services trade up by 7 per cent in 2024, contributing to half of the overall increase. In contrast, goods trade saw a more modest rise of 2 per cent , still trailing behind its 2022 peak.

The UNCTAD report highlights the growing divide between advanced economies and developing economies. Developing countries, which have traditionally been key drivers of global trade, faced significant challenges in the third quarter of 2024. Imports from these nations contracted by 1%, and South-South trade—trade between developing countries—also declined by a similar margin.

On the other hand, advanced economies led the global growth, with a 3 per cent rise in imports and a 2 per cent increase in exports during the same period. Stable demand in these regions supported the positive trade performance.

Despite the setbacks for developing economies, the report points to several opportunities for growth in high-demand sectors. Trade in ICT goods surged by 13 per cent, while the clothing sector grew by 14 per cent in the third quarter of 2024. These sectors highlight the potential for developing countries to diversify their trade and increase their presence in value-added industries.

However, traditional sectors critical to many developing economies, such as energy and metals, are facing a decline. Energy trade fell by 2 per cent in Q3 and 7 per cent year-over-year, while metals trade contracted by 3 per cent . The automotive sector also faced challenges in Q3, with a 3 per cent decline, but it is expected to finish the year with a 4 per cent annual growth.

Looking ahead, stable global growth forecasts and reduced inflation offer hope for building resilience in global trade. UNCTAD emphasized that these factors could provide a foundation for economic recovery and continued growth in 2025.

As global trade continues to recover, the focus will be on leveraging emerging sectors and technologies to sustain growth, with developing economies encouraged to explore new markets and capitalize on diversification opportunities.